Question
Georgio owns a 20 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains,
Georgio owns a 20 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses:
| Sales revenue | $ | 88,000 | |
| Gain on sale of land (1231) | $ | 15,600 | |
| Cost of goods sold | $ | (27,250 | ) |
| DepreciationMACRS | $ | (4,950 | ) |
| 179 deduction* | $ | (18,400 | ) |
| Employee wages | $ | (14,700 | ) |
| Fines and penalties | $ | (5,400 | ) |
| Municipal bond interest | $ | 7,650 | |
| Short-term capital gains | $ | 5,700 | |
| Guaranteed payment to Sandra | $ | (3,650 | ) |
*Assume the 179 property placed in service limitation does not apply.
a. How much ordinary business income (loss) is allocated to Georgio for the year?
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b. What are Georgios separately stated items for the year?
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Practical Guide To Commercial And Industrial Energy Auditing
Authors: Mtijan M Kamara
1st Edition
1717257321, 978-1717257321
